Wholesale gold prices dipped below $1,665 an ounce during Wednesday morning's London trading, slightly below where they started the week, while stock markets also edged lower, with markets focused on upcoming meetings of central bankers.
The new trading week started with small losses in the precious metals complex despite a 0.14% drop in the US dollar and a near-$1 advance in crude oil. Small-scale profit-taking was cited after gold market players attempted a test at the $1,680 resistance area.
Gold hit a high not seen since mid-April on Monday, continuing the momentum from last week’s gains as investors expect further monetary stimulus from central banks and become increasingly concerned about inflation.
US dollar prices quoted for gold bullion on the wholesale market rose to $1,596 an ounce during Friday morning's London trading, recovering some ground following three days of losses, as stock markets also rebounded ahead of the release of US nonfarm payrolls data.
Gold traded sideways on Friday, hovering after its four days of losses when the ECB fell short of any immediate bold action to help the euro-zone debt crisis. ECB President Draghi’s comment "to do anything it takes” was a clear example of over promising and under delivering.
Wholesale prices for gold investment bars struggled just above $1,600 per ounce in London on Thursday, after dipping below that level for the first time in a week as the US Federal Reserve left monetary policy unchanged yesterday.
The final trading session of the week opened higher in metals as participants continued to bet that Mr. Draghi’s words will translate into action and that the GDP numbers will be the final motivating factor for the Fed to take action next week.
US dollar gold prices dropped as low as $1,565 an ounce during Wednesday morning's London trade – 1.4% down on this week's high – before recovering some ground by lunchtime, while stock markets posted slight gains.
Wholesale market gold bullion prices dropped below $1,570 an ounce during Monday morning's London session, though they remain broadly in line with where they ended last week, with markets focused on this week's European leaders' summit.
Gold spot dealings in New York opened the week on a downward note, losing from .50% to 1% and basically trading in a channel of from $1,770 to $1,780 without Friday's display of bullish energy. Spot bullion commenced trading at $1,781 per ounce.